ESE
ESCO Technologies Inc.
ESE's fundamentals are strong and it looks cheap: trading at 19x earnings, below its usual 30x. Analysts expect earnings growth, though they disagree widely on how much.
ESE Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Strong |
ESE's revenue, profitability, cash flow and balance sheet are all currently healthy.
ESE PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 19x | $235 | — |
| Cheap | 22x | $268 | +14% |
| Forward | 25x | $235 | — |
| Fair | 29x | $357 | +52% |
| Expensive | 42x | $511 | +117% |
Historical ranges are pointers, not guarantees.
ESE's PE is in its cheap range at 19x. On analysts' estimates for next year's earnings, today's price would be 25x.
ESE Forward outlook
| Metric | Outlook |
|---|---|
| Strongly deteriorating | |
| Growth | |
| Strong growth | |
| Weakening | |
| Limited | |
| Low |
Analysts expect earnings and revenue growth for ESE, but weaker profitability. However, they disagree widely on these estimates.
ESE Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $9.32 | -23% |
| Q2 2026 | $12.14 | +173% |
| Q1 2026 | $11.89 | +161% |
| Q4 2025 | $11.75 | +176% |
| Q3 2025 | $11.55 | +193% |
| Q2 2025 | $4.44 | +15% |
| Q1 2025 | $4.56 | +20% |
| Q4 2024 | $4.26 | +18% |
| Q3 2024 | $3.94 | +10% |
ESE's earnings per share have climbed steadily: $12.14 over the past year, up 173% from the year before, and higher year over year for 19 quarters in a row.
ESE Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $339M | +14% |
| Q1 2026 | $309.3M | +17% |
| Q4 2025 | $289.7M | +17% |
| Q3 2025 | $352.7M | +18% |
| Q2 2025 | $296.3M | +14% |
| Q1 2025 | $265.5M | +6.6% |
| Q4 2024 | $247M | +13% |
| Q3 2024 | $298.5M | +9.5% |
ESE's revenue has grown year over year for 19 quarters in a row: $339M last quarter, up 14% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 12% | +0.9 points |
| Q1 2026 | 14% | -1.1 points |
| Q4 2025 | 13% | +1.1 points |
| Q3 2025 | 17% | +2.1 points |
| Q2 2025 | 11% | -3.1 points |
| Q1 2025 | 15% | +3.5 points |
| Q4 2024 | 12% | +3.2 points |
| Q3 2024 | 15% | -0.4 points |
ESE's operating margin was 12% last quarter, up 0.9 points from the same quarter a year ago.
ESE Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $47.3M | -27% |
| Q1 2026 | -$811K | -106% |
| Q4 2025 | $63M | +117% |
| Q3 2025 | $97.8M | +61% |
| Q2 2025 | $64.9M | +135% |
| Q1 2025 | $14M | +585% |
| Q4 2024 | $29M | +3126% |
| Q3 2024 | $60.9M | +44% |
ESE generated $207M in free cash flow over the past year, up 23% from the year before.
ESE Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +42K shares |
| 1 year | +0.2% | +62K shares |
| 3 years | +0.6% | +153K shares |
| 5 years | -0.9% | -234K shares |
| Available history | -0.4% | -117K shares |
ESE has 26M diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q3 2024 | — |
| Q2 2024 | $809,000 |
| Q1 2024 | $5.1M |
| Q4 2023 | $2.1M |
| Q3 2023 | — |
| Q2 2023 | $184,000 |
| Q1 2023 | $8.1M |
| Q4 2022 | $4.1M |
ESE Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | 0.0x | Very low |
| Q1 2026 | 0.2x | Very low |
| Q4 2025 | 0.2x | Very low |
| Q3 2025 | 0.4x | Very low |
| Q2 2025 | 2.1x | Moderate |
| Q1 2025 | 0.2x | Very low |
| Q4 2024 | 0.2x | Very low |
| Q3 2024 | 0.3x | Very low |
ESE's net debt is less than a year of its operating earnings (EBITDA), down from 2.1 years a year ago.
ESE Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 34.5 | Neutral |
| Stochastic | 9.4 | Oversold |
ESE's weekly RSI is 34 (neutral) and its Stochastic is 9 (oversold).
ESE PE vs Technology Sector
| Metric | ESE | Sector median | Relative |
|---|---|---|---|
| PE | 19x | 28x | 30% below |
| PE % | 15 | 35 | 20 pts below |
ESE is trading at 19x earnings, a 30% discount to the Technology sector's median of 28x.
ESE Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $248.2 | 5.2% below |
| 20 week MA | $279.8 | 16% below |
| 50 week MA | $273.0 | 14% below |
| 100 week MA | $226.1 | 4.1% above |
| 200 week MA | $166.7 | 41% above |
ESE has pulled back, but its long-term trend is still up: it's below its 8-, 20- and 50-week averages, but 41% above its 200-week average.
ESE Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $91.7 | $101.4 | +11% |
| 2021 | $101.4 | $86.7 | -15% |
| 2022 | $86.7 | $88.0 | +1.5% |
| 2023 | $88.0 | $117.0 | +33% |
| 2024 | $117.0 | $134.6 | +15% |
| 2025 | $134.6 | $200.5 | +49% |
| 2026 YTD | $200.5 | $235.3 | +17% |
ESE has finished higher in five of the last six years. It's up 17% so far in 2026.